Rexam Ltd : A likely return of the bullish trend
Entry price | Target | Stop-loss | Potential |
---|
GBX 438.2 |
GBX 0 |
GBX 424 |
-100% |
---|
Traders should take advantage of a potential rebound.
From a fundamental viewpoint, the packaging company is cheap with a P/E Ratio of 12.7x for 2015 and a Capitalisation/Revenue ratio of 0.79x for this year. Analysts covering the stock target on average a 13% appreciation potential.
After several weeks of horizontal fluctuations within the mid-term range GBp 437.6/463.5, the stock is coming back close to the lower limit of the channel. The GBp 437.6 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 450.4 mid-term resistance and then the long-term target price is the GBp 463.5.
Investors can benefit from the proximity of the strong support currently tested in order to buy Rexam with a good timing. Investors might place a stop loss order under GBp 437 in order to avoid important losses.
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